ANNUAL GENERAL MEETING · ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited...

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ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited ASX:SOP

Transcript of ANNUAL GENERAL MEETING · ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited...

Page 1: ANNUAL GENERAL MEETING · ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited ASX:SOP. ... FY17 performance of Synertec Pty Ltd in line with managementexpectations

ANNUAL GENERAL MEETING23 NOVEMBER, 2017

Synertec Corporation Limited

ASX:SOP

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DISCLAIMER

The Information in this presentation is not an offer or recommendation to purchase or subscribe for securities in

Synertec Corporation Limited or any of its subsidiaries or to retain or sell any securities. This presentation does not

consider, nor does it intend to consider the potential and/or current individual investment objectives and/or financial ssituation

of investors.

This presentation contains forward looking statements. Such forward-lookingstatements are not guarantees of futureperformance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and our management.

We cannot and do not give any assurancethat the results, performance or achievements expressed or implied by theforward-lookingstatements contained in this presentation will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.

We have no intention to update or revise forward-lookingstatements, or to publish prospective financial informationin the future, regardless of whether new information, future events or any other factors affect the information contained in this presentation, except where required by law.

To the maximum extent permitted by law, Synertec Corporation Limited andits subsidiaries, along with each entitiesofficers, employees and advisers excludes all liability (including negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.

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© Synertec 2017

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THE BOARD

Leeanne Bond- Independent Non-executive Chair

Michael Carroll – Managing Director

Freddie Heng – Independent Non-executive Director

Poh Kiat – Independent Non-executive Director

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FINANCIAL PICTURE

Successful acquisition of Synertec Pty Ltd completed on 8 August 2017• Combined cash position at completionof $5.2m1

(After sale consideration and transactions costs paid to that date and proceeds from shares issued undershare offer)

FY17 performance of Synertec Pty Ltd in line with management expectations• Revenue of $14.7m2

• Normalised EBITDA3 of $1.3m

• Net Assets of $6.8m2, including:

– Cash of $3.7m, comprising cash and cash equivalents of $3.0m and earmarked term deposits of $0.7m

– Trade debtors of $2.7m (subsequently received)

– No debt

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Sale of mining and related assets for $3.5m by Synergy Metals Pty Ltd (wholly owned subsidiary), executed on 22 September 2017

1 Subject to review and audit by the Company’s auditors2 Extract from Synertec Pty Ltd’s audited financial statements as at 30 June 20173 The directors believe the presentation of certain non-IFRS financial measures is useful for the users of this document as they reflect the

underlying financial performance of the Company. The non-IFRS financial profit measures are used by the Managing Director to review

operations of the Company and include but are limited to: Normalised EBITDA – Earnings before interest, tax, depreciation, and one off items

such as Transaction Costs. The above non-IFRS financial measure has not been subject to review or audit by the Company’s auditors. This non-

IFRS financial measure reconciles to the profit before income tax as reported in the Statement of Profit and Loss and Other Comprehensive

Income on page 6 of the Synertec Pty Ltd Annual Report as at 30 June 2017.

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WHAT DOES SYNERTEC DO?

• Specialist engineering products and solutionsprovider targeting specific markets and niche engineering solutions

We target industries and/or projects that are highly–

Complex

Risky(i.e. technical, reputational, schedule…)and

Regulated (e.g. compliance requirements)

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STRATEGY – TARGETGEOGRAPHIES

Our primary target Geographies are:

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AustraliaMiddle EastChinaSouth East Asia

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STRATEGY – TARGETINDUSTRIES

• We strategically target the following industries:–

Oil and Gas

Liquid Natural Gas (LNG)

Infrastructure (i.e. rail, water, etc.)

Defence

Fuel Terminals

Pharmaceutical

Metals Processing and

Food and Dairy

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STRATEGY - PRODUCTS

• We leverage our Products and Engineering Solutionsto penetrate the following markets:

LNG Custody Transfer System

Gas Pipelines Control Systems

Online Process Analytics/Instrumentation

Automation and Safety Systems (SCADA, PLC,DCS)

Hazardous Area System Designs

Manufacturing Enterprise System (MES)

High Tech Manufacturing Facilities

Engineering Procurement and Construction Management (EPCM)and Lump Sum project delivery

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TRENDS

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SYNERTEC REVENUE BY SECTOR (%)

SECTOR FY13 FY14 FY15 FY16 FY17*

OIL & GAS 67.1 65.7 64.3 73 51

WATER 8.6 10.2 13.1 7.1 18

PHARMACEUTICAL 17.1 5.2 7.6 11.5 25

DEFENCE 0.4 4.4 7.6 5.5 4

TERMINALS 6 13.7 6.6 0.6 1

FOOD & BEV 0.3 0.8 0.7 2.2 0.4

PETROCHEM & OTHER 0.5 0 0.1 0.1 1

* Rounding error

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CURRENT/EMERGING INDUSTRY TRENDS

Oil & Gas• Current LNG (greenfield) construction projects coming to an end (both withinAust and overseas) but

potential for new emerging projectsRenewals (brownfield) debottlenecking projects increasingCustody Transfer System demand increasing (local and International) Associated product development underway

•••

Water••

New and renewals spending increasingBuilding on major long term contract with Melbourne Water

Pharmaceutical• Increased interest in manufacturing by foreign companies to take advantage of Australia’s reputation –

especially China

Defence• Significant projects such as new submarines and warships present opportunity

Terminals• Very limited expenditure over recent years, expectation of increasedexpenditure in the near term presents

opportunities

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SUMMARY

Regional and industry diversity reduces revenue risk

Infrastructure spending is increasing in all target regions including:

Belt and Road Initiative (China) offers great opportunity

North Australia Investment Fund (NAIF, $5billion)

Defence spending in Australia

LNG will be in undersupply by 2022 – new capital expenditure

High Tech manufacturing–

Well capitalized with significant cash

The Board has the skills and diversity to manage growth

It is an exciting time for Synertec Shareholders

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© Synertec 2017

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